Budweiser May Choose to Segment Its Market Based on Heavy

question 30

Multiple Choice

Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on

• A) behavioristic variables.
• B) benefits.
• C) lifestyles.
• D) psychographic variables.
• E) demographic variables.

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Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a specific input, ceteris paribus.

Variable Input

An input in the production process that can be adjusted in the short term, such as labor or raw materials.

Average Total Cost

The sum of all production costs (both fixed and variable) divided by the total quantity of units manufactured.

Demand

The desire of consumers to purchase goods and services at given prices, which is a fundamental concept in economics determining market dynamics.